APG, the asset management vehicle of Dutch pension fund giant APG, plans to boost its allocation to real estate from 8% to 9% over the next three years. Based on a portfolio of over EUR 20 bn, that translates into an investment of some EUR 2-2.5 bn.
APG, the asset management vehicle of Dutch pension fund giant APG, plans to boost its allocation to real estate from 8% to 9% over the next three years. Based on a portfolio of over EUR 20 bn, that translates into an investment of some EUR 2-2.5 bn.
'We virtually didn't invest anything in 2009,' notes Patrick Kanters, global head of real estate at APG, in an interview with PropertyEU. 'The market was still correcting and there was a lot of uncertainty. We wanted to see where things were going.' Following a peak to trough correction of between 25% and 40%, Kanters now sees opportunities in the years ahead. ‘'We have been very active since the beginning of 2010. We believe 2010-12 will be very good vintage years.'
Altogether APG has forked out almost EUR 1 bn in investments or commitments so far this year. While Europe accounts for the bulk of this figure, the pension fund is now actively expanding its presence outside its home market, in particular in Brazil, China and the US.
The current investment drive marks a major shift in strategy from the past few years. In 2006, Kanters was one of the first in the industry to express his fears of a growing bubble in the sector and he and his team subsequently accelerated the pace of sell-offs to reduce the weight of real estate in the total portfolio from 11% to 9%. In 2009, the overall allocation declined even further to around 8%,
Click on the link below to read 'APG sets sights on real estate debt opportunities'. The full interview with APG's Patrick Kanters appears in the September edition of PropertyEU Magazine.
